Plus much of the “high growth regions” potential was overestimated. It was the trendy business group think of 10 years ago - “we’ve got to expand into these high growth regions!”.
GM looking to complete retreat from India
Although GM stopped producing vehicles in India back in 2017, there have been lingering nagging issues complicating the company's retreat from the country, including government regulations and legal issues with former employees.
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It is far from just an automotive issue, but some are blinded by their contempt for American automotive brands.
You can look at many industries, and not just from the US, that fell for the allure of "high growth" markets and rushed to these markets while their conventional markets were mature. But "high growth" didn't equate to high (or often any) profits. So the natural reflex is to retreat. Perhaps many companies and industries will concentrate more on their mature, strong markets instead of neglecting them. Thats what happened in another "group think" business cycle where the fad went from diversification to returning to focus on core products.
The two new "group thinks" I see from my position in a large corporation are a strong emphasis on the 80-20 theory (we don't need some customers/products so drop anything that doesn't make lots of profit, paraphrased) and product vitality (a metric where FCA USA would fail miserably). These have certainly replaced diversification and an emphasis on "high growth" regions from my viewpoint.
You can look at many industries, and not just from the US, that fell for the allure of "high growth" markets and rushed to these markets while their conventional markets were mature. But "high growth" didn't equate to high (or often any) profits. So the natural reflex is to retreat. Perhaps many companies and industries will concentrate more on their mature, strong markets instead of neglecting them. Thats what happened in another "group think" business cycle where the fad went from diversification to returning to focus on core products.
The two new "group thinks" I see from my position in a large corporation are a strong emphasis on the 80-20 theory (we don't need some customers/products so drop anything that doesn't make lots of profit, paraphrased) and product vitality (a metric where FCA USA would fail miserably). These have certainly replaced diversification and an emphasis on "high growth" regions from my viewpoint.
There are barriers to market for foreign companies and protection for domestic companies that come into play in many regions. The fault is not only the bad behavior or those American auto makers some hold in such contempt.
Let’s stop the silly dollar is so strong argument.
It isn’t compared to the Euro. Or the Japanese Yen. Look at historical charts before making that claim.
It isn’t compared to the Euro. Or the Japanese Yen. Look at historical charts before making that claim.
That doesn’t change facts. Look at the 5 year (or more) trend of Euro or Yen vs. dollar. Or do you trust everything that certain people say without verification of any of it. In fact, there even been a recent downward trend of the dollar when I compared last week.Tell that to tavares and richard palmer who are gleeful about the strong dollar (esp the current bout caused by large fast fed tightening): a good chunk ie several billion euros of stellantis' bumper global industry leading (more or less) profitability and (net)margins is due to 'favorable fx translation' aka strong dollar! The yen the korean won the aussie$ the brazilian real...the dirham too have consistently made 'imported from detroit' uncompetitive price wise (all else being equal), in fact that is a major reason why gm and ford globalized manufacturing with their non USA models....only to STILL be uncompetitivw on cost price with japanese korean and now china firms and models because of the consistently depreciated yen yuan won etc. Why do you suppose gm and ford (and chrysler corp and then fca) have withered away from australia.....also india, brazil etc. The made in usa fca Cherokee flunked in europe (large exports had been planned from usa) largely due overpricing due to strong dollar. Dollar is always too strong, even when fed doesn't raise interest rates fast and furious as currently. Because usa fiscal AND trade deficits are so epic that the dollar ought to ALWAYS be much much lower than the levels it. I believe the dollar's 'global reserve currency' status then is central to why usa manufacturing exports for eg of gm or ford cars and trucks and suv s and engines transmissions etc have suffered. Ie one major part of why gm and ford for eg have over last 2 decades or more withered and failed in global markets (ex n america). The dollar is always over valued relative to the epically epic size of american deficits. Incidentally the 'price' has been paid for this by usa labor esp in manufacturing. Just as italian labor costs and jobs bore the cost of the overvalued euro/common currency (to the benefit of german auto firms)
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